Kuala lumpur: Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) and South Korea-based Polaris Bio Co Ltd have entered into a significant partnership, securing RM700 million in investments to develop biogas upgrading facilities utilizing palm oil mill effluent (POME) in Malaysia.
According to BERNAMA News Agency, the initial phase of the investment will allocate RM30 million to establish the first facility, part of the broader RM700 million plan. This pilot project aims to demonstrate the technical and financial feasibility of biogas upgrading, setting the stage for a nationwide rollout of over 20 facilities. These facilities are projected to reduce up to 384,000 tonnes of carbon dioxide equivalent annually.
Bioeconomy Corporation CEO Mohd Khairul Fidzal Abdul Razak and Polaris Bio CEO Junghwan Kim formalized their collaboration by exchanging a memorandum of understanding at the National Innovation and Creative Economy Expo 2025. The event was graced by the presence of Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Seri Haji Fadillah Yusof.
The partnership seeks to accelerate the commercialization of biotechnology in Malaysia by converting POME into bio-compressed natural gas (Bio-CNG), fostering the creation of internationally tradable carbon credits, known as Internationally Transferred Mitigation Outcomes (ITMOs), under Article 6.2 of the Paris Agreement.
Mohd Khairul Fidzal highlighted that while previous projects faced challenges like inconsistent yields and high maintenance costs, recent technological advancements have enhanced the efficiency and reliability of biogas upgrading. These improvements have made it possible to convert biogas into Bio-CNG, biomethane, and green chemicals, contributing to Malaysia’s renewable energy and bio-based industrial ecosystem.
He noted the Bioeconomy Corporation’s role in facilitating bioenergy partnerships over the past two years, indicating a surge of activity and renewed investor confidence in the sector. The partnership with Polaris Bio is seen as a step forward in positioning bioenergy at the core of Malaysia’s energy transition.
Junghwan Kim emphasized that the collaboration opens new opportunities for scaling bioenergy solutions in Malaysia and sets a benchmark for cross-border climate partnerships. He noted that since 2020, Polaris Bio has been engaged in pioneering POME-to-Bio-CNG initiatives in Malaysia, reinforcing Korea-Malaysia cooperation in renewable energy and carbon markets. The collaboration is the first bilateral endeavor under Article 6.2, aimed at enhancing carbon market development in both countries.